Kratos Defense and Security Solutions, Inc. (NASDAQ:KTOS) Q1 2022 Earnings Conference Call May 5, 2022 10:00 AM ET

Company Participants

Marie Mendoza - Senior Vice President & General Counsel

Eric DeMarco - President & Chief Executive Officer

Deanna Lund - Executive Vice President & Chief Financial Officer

Conference Call Participants

Mike Crawford - B. Riley Securities FBR

Ken Herbert - RBC Capital Markets

Austin Moeller - Canaccord Genuity

Peter Arment - Baird

Joe Gomes - NOBLE Capital Markets

Pete Skibitski - Alembic Global

Operator

Welcome to the Kratos Defense & Security Solutions First Quarter 2022 Earnings Conference Call. My name is Daryl, and I will be your operator for today's call. At this time, Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.

I will now turn the call over to Marie Mendoza, Senior VP and General Counsel. Marie, you may begin.

Marie Mendoza

Thank you. Good afternoon. Thank you for joining us for the Kratos Defense & Security Solutions first quarter 2022 conference call. With me today is Eric DeMarco, Kratos' President and Chief Executive Officer; and Deanna Lund, Kratos' Executive Vice President and Chief Financial Officer.

Before we begin the substance of today's call, I'd like everyone to please take note of the safe harbor paragraph as included at the end of today's press release. This paragraph emphasizes the major uncertainties and risks inherent in the forward-looking statements we will make this afternoon. Please keep these uncertainties and risks in line as we discuss future strategic initiatives, potential market opportunities, operational outlook and financial guidance during today's call. Today's call will also include a discussion of non-GAAP financial measures as that term is defined in Regulation G. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with GAAP. Accordingly, as of today's press release, we have provided a reconciliation of these non-GAAP financial measures to the company's financial results prepared in accordance with GAAP.

With that, I will now turn the call over to Eric DeMarco.

Eric DeMarco

Thank you, Marie. Good afternoon. Since our last report to you, there have been several positive developments for the industry and in particular, for Kratos which I will go through today and which provide additional confidence in this year's financial forecast and the future outlook for your company. As we had planned for in our 2022 financial forecast, the 2022 DoD budget was approved in March which was important for a number of Kratos programs that are in or are transitioning from development or in low rate initial production and transitioning to full rate production or which are in production and had planned for increases to that production.